At a Piper Jaffray consumer conference taking place in New York, the teen retailer said second-quarter results will not be as strong as those in te first quarter, citing weak consumer demand.
Abercrombie has previously warned about gross margin pressure in the second-quarter.
Shares of Abercrombie fell more than 3% following the news.Abercrombie & Fitch had been one of the few standouts in the teen sector, which has been grappling with inflated sourcing costs, higher gas prices and discounting. Teen unemployment has been around 20% and isn't expected to ease amid the summer hiring season. Rivals Aeropostale (ARO) and American Eagle Outfitters (AEO) reported disappointing first-quarter earnings results and issued lackluster forecasts last month. -- Written by Jeanine Poggi in New York >To contact the writer of this article, click here: Jeanine Poggi. >To follow the writer on Twitter, go to http://twitter.com/jpoggi. >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV